If you’re a property owner in search of some extra income, renting out a spare room can be a great way to make use of available space while offsetting living expenses. To begin, you’ll need an Arizona room rental agreement to set expectations from the start.
Similar to an Arizona lease agreement, room rental agreements should include essential details like:
- Rent, security deposits, and payment process
- Responsibilities of each individual
- Any required state and federal disclosures
- House rules
- Shared space expectations
In this article, we will discuss everything you need to know to get started.
Room Rental Laws
When renting out a room in your home (even though it’s under your roof), you still must follow Arizona landlord-tenant laws. Thus, here are some key takeaways for Arizona landlords:
- Provide safe, habitable living conditions
- Handle entry and privacy properly
- Follow security deposit rules
- Use legal eviction procedures only
- Make timely repairs
- Provide required state and federal disclosures
Staying compliant with Arizona laws is the best way to keep your rental running overtime and your risk low.
Different Types of Room Rental Agreements in Arizona
Rental property owners have options for setting up a room rental agreement in Arizona. Ultimately, the choice will depend on these key factors:
- How much flexibility you like
- Whether you want a formal or informal setup
- How long you expect the tenant to stay
Verbal agreement: If you know the person who will be renting out the room well, you may feel most comfortable using a verbal agreement.
Fixed-term lease: As the name suggests, this type of lease agreement runs for a set time period, typically, a certain number of months to a year.
Month-to-month lease: An Arizona month-to-month lease agreement will renew each month until either party provides proper notice to end it.
Deciding which type of agreement is best for you comes down to your relationship with the tenant and how well you know them. It also depends on the level of structure you’re most comfortable with.
Required Landlord Disclosures
It’s important to note that Arizona has several specific federal and state disclosure requirements that landlords must provide before a rental agreement begins.
Lead-based paint disclosure for older homes: If the rental property’s construction was before 1978, then federal law requires you to disclose any known lead-based paint or hazards. Additionally, you must provide your tenants with the EPA pamphlet on lead safety (42 U.S.C. § 4852).
Owner and property manager information: The rental agreement must list the name and address of the property owner and anyone authorized to manage the rental or accept legal notices on your behalf (Ariz. Rev. Stat. § 33-1322).
Access to the Arizona Landlord-Tenant Act: At lease signing, landlords must give tenants a copy of the Arizona Residential Landlord Tenant Act or tell them where they can access it online through the Arizona Department of Housing (Ariz. Rev. Stat. § 33-1322(B)).
Move-in and move-out condition: Landlords must provide tenants with a detailed checklist to document the unit’s condition at move-in, typically within 5 days. Similarly, they must give a move-out checklist to justify a security deposit deduction (Ariz. Rev. Stat. § 33-1321).
Bed bug education and disclosure: Landlords must provide information about bed bugs. However, if there is an infestation in the unit, they cannot rent it. Tenants are also required to notify you promptly in writing if they suspect bed bugs (Ariz. Rev. Stat. § 33-1319).
Pool safety: If the property has a swimming pool on premises, landlords are required to provide a pool safety notice, approved by the Arizona Department of Health Services (Ariz. Rev. Stat. § 36-1681(E)).
Non-refundable fees: Any fee landlords intend to keep must be clearly labeled as “non-refundable” in the lease. If they don’t state it that way, Arizona law treats the fee as refundable (Ariz. Rev. Stat. § 33-1321(B)).
Shared utilities: When utilities are shared or sub-metered, landlords must explain the calculation and division of charges. Plus, you may also disclose any administrative fee for handling the utility payments (Ariz. Rev. Stat. § 33-1314.01).
Notice of foreclosure: If the property is in foreclosure, landlords must inform tenants so they understand how it can affect their tenancy (Ariz. Rev. Stat. § 33-1331(A)).
Security Deposit Rules
Maximum security deposit: In Arizona, landlords may not charge more than 1.5 months’ rent as a security deposit (Ariz. Rev. Stat. § 33-1321(A)).
Security deposit receipt: There is no state law in Arizona requiring a landlord to provide a security deposit receipt for a room rental agreement.
Deduction tracking: Landlords may use the tenant’s security deposit to cover any unpaid rent, charges allowed in the lease, and/or damage beyond normal wear and tear (Ariz. Rev. Stat. § 33-1321(D)).
Security deposit return: Within 14 days after the tenancy ends and the tenant demands the deposit, landlords must mail an itemized statement of deductions and any remaining balance owed to the tenant (Ariz. Rev. Stat. § 33-1321(D)).
Pet deposits: Arizona law doesn’t create a separate category for pet deposits.
Rent Payment Rules
Late rent fees: If a tenant is late paying rent, landlords can charge a fee only if it’s written into the existing lease. Therefore, landlords can’t charge a fee after the fact.
Grace period: Arizona law doesn’t require landlords to offer tenants a grace period for late rent.
Right to withhold rent: Tenants may have the right to withhold rent if their landlord fails to fix serious health or safety issues after receiving proper notice and being given time to make the repairs (Ariz. Rev. Stat. § 33-1363(A)).
Pet rent: Arizona allows landlords to charge pet rent if it’s already written into the lease.
Rent Payment Increase Rules
Rent payment increase maximum: State law doesn’t set a cap on how much landlords can raise rent for private residential properties.
Rent payment increase frequency: Additionally, Arizona law does not limit how often landlords can raise rent.
Rent control/stabilization: Arizona law prohibits cities and towns from imposing rent control on private residential rentals. Only state or government-owned or subsidized housing is exempt (Ariz. Rev. Stat. § 33-1329).
Arizona Room Rental Agreement Breaches
Failure to pay: If a room renter fails to pay rent on time, landlords must provide them with written notice requiring payment of the overdue amount within 5 days (Ariz. Rev. Stat. § 33-2143).
Lease violations: Most rental breaches allow 14 days to cure and 30 days to terminate, while health, safety, and serious violations allow for immediate action (Ariz. Rev. Stat. § 33-2143).
Self-help evictions: Arizona law prohibits self-help evictions. Attempting to bypass the legal eviction process opens landlords to liability.
Terminating an Arizona Room Rental Agreement
Month-to-month: In Arizona, either the landlord or the tenant can decide to terminate a month-to-month lease by providing 30 days’ written notice (Ariz. Rev. Stat. § 33-1375(B)).
Fixed-term: In a fixed-term lease, both the landlord and tenant are generally bound to the agreement until it expires. However, certain circumstances allow tenants to terminate the lease earlier. (See Tenant’s right to terminate below).
Room abandonment: If a tenant abandons a room before the lease ends, they may still owe rent until the agreement expires or until the landlord can re-rent that room (Ariz. Rev. Stat. § 33-1370(C)).
Tenant’s right to terminate: Arizona law allows tenants to end a lease early in particular situations, such as entering active military duty, domestic violence or sexual assault, or when a landlord seriously violates their legal duties (Ariz. Rev. Stat. § 33-1318).
Landlord Access Laws
Immediate access: If there is an emergency that threatens life or property, such as a fire, major water leak, or gas issue, the landlord may enter the unit immediately and without notice to address the problem (Ariz. Rev. Stat. § 33-1343(C)).
Advance notice: For routine inspections, maintenance, or repairs, Arizona landlords must provide their tenants with at least 48 hours’ advance notice before entering the unit (Ariz. Rev. Stat. § 33-1343(A)).
Landlord harassment: Repeated entries without proper notice, or entering without a valid reason, are harassment under Arizona law (Ariz. Rev. Stat. § 33-1343(D)).
Lease Agreement Renewal and Termination
Required renewals: Arizona rental property owners can’t refuse to renew a lease without a valid reason, such as lease violations, nonpayment of rent, or a pattern of noncompliance. Therefore, if no such reason exists, the tenant may have the right to continue the tenancy (Ariz. Rev. Stat. § 33-2143(A)).
Required notice: Should a landlord decide not to renew a fixed-term lease of the room rental, Arizona law requires at least 90 days’ written move-out notice before the lease expires (Ariz. Rev. Stat. § 33-2143).
Month-to-month considerations: Month-to-month rentals still require formal notice. Even though these agreements renew each month, landlords can’t end them casually. Provide written notice that meets Arizona’s timing rules and, when required, states your good cause.
Room Rental Agreement Arizona FAQs
What to include in an Arizona room rental agreement?
An Arizona room rental agreement should include the terms of the shared living arrangement, the names of all parties, the property address, which room is the rental, the rent amount, when rent is due, security deposit terms, and details on shared utilities. Landlords should also include house rules, guest policies, parking, and responsibilities for cleaning and maintenance.
How do I legally rent out a room?
To legally rent out a room, ensure the property complies with local zoning and occupancy regulations. Then use a written room rental agreement in Arizona that complies with state law.
How to make an Arizona room rental agreement?
Use landlord software to create a room rental agreement in Arizona, which provides a customizable template you can use to create your own downloadable, printable PDF.
